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SPACs Raised More than $83 Billion in 2020, Higher than the Past 10 Years Combined

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SPACs Raised More than $83 Billion in 2020, Higher than the Past 10 Years Combined

The year 2020 was an outstanding year for Special Purpose Acquisition Companies (SPACs) in the US. According to the research data analyzed and published by Sijoitusrahastot248 US SPACS raised $83.04 billion in 2020. That was almost double the $47.11 billion raised in the previous 10 years combined. Compared to the 59 deals made in 2019, there was a 300% increase in deal volume.

Based on SPAC Alpha data, the market share of US-listed SPACS rose from 23% in 2019 to 53% in 2020.

Average SPAC Trust Size Rises Fivefold from $72 Million in 2010 to $345 Million in 2020

Activity in the SPAC space was particularly noteworthy in the second half of 2020, when over 200 SPAC deals closed, compared to only 34 in H1 2020.

According to McKinsey, as of August 2020, 90% of all SPAC deals made in 2020 closed successfully. Prior to 2015, the success rate was much lower as 20% had to liquidate and return investor money.

Moreover, over the past decade, the average SPAC trust size has shot up fivefold. From $71.8 million in 2010, the figure rose to an average of $344.8 million in 2020.

Live Oak Acquisition Corp had one of the most successful SPACs in 2020. After its May 2020 IPO, the company merged with Danimer Scientific. By December 30, 2020, it had gained a 171% return from the offer value. Additionally, Kensington Capital Acquisition had a 162% gain while TPG Pace Beneficial Finance posted a 154% increase in value.

Goldman Sachs was among the top beneficiaries of the SPAC boom on Wall Street. During the year, the bank made $3.41 billion in underwriting fees. Morgan Stanley was second with $3.09 billion, marking an 81% year-over-year (YoY) uptick. JP Morgan Chase took third place with a 66% YoY increase in fees to $2.76 billion.

2021 is set to be another landmark year as in its first three weeks, the total number of SPACs had already surpassed the 2019 annual total.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Nigerian Stock Exchange

Transactions on Nigerian Stock Exchange Declined by 13.7 Percent to N232.5 billion in January 2021

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Nigerian stock market

Transactions on Nigerian Stock Exchange Declined by 13.7 Percent to N232.5 billion in January 2021

The total transactions performed by both foreign and local investors at the Nigerian Stock Exchange (NSE) in January 2021 declined by 13.66 percent from N269.24 billion recorded in December 2020 to N232.46 billion.

The bourse stated in its monthly report titled ‘The Nigerian Stock Exchange’s Domestic & Foreign Portfolio Investment Report.’

A breakdown of the report showed foreign investors’ total transactions stood at N47.52 billion or 20.44 percent of the total transactions performed in the month of January, below the N70.32 billion or 29.86 percent recorded in the same month of 2020.

While domestic transactions accounted for N184.94 billion or 79.56 percent, higher than the N165.14 billion or 70.14 percent posted in the corresponding month of 2020.

Foreign inflow stood at N16.73 billion in January 2021, again below the N23.82 billion recorded in January 2020. However, a total of N30.79 billion was withdrawn by foreign investors from the Exchange in the month under review.

Domestic retail investors dumped N67.44 billion on Nigerian assets in January 2021 while domestic institutional investors invested N117.50 billion.

According to the Exchange, the “total domestic transactions accounted for about 74% of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26% of the total transactions in the same period.”

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Nigerian Stock Exchange

Stock Investors Lose N203 Billion Last Week

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Nigerian Stock Exchange

Stock Investors Lose N203 Billion Last Week

Investors in the Nigerian Stock Exchange lost N203 billion last week as the downward trend continues across the board.

Investors traded 1.930 billion shares worth N20.656 billion in 24,687 deals during the week, against a total of 1.541 billion shares valued at N18.235 billion that exchanged hands in the previous week in 22,752 transactions.

In terms of volume traded, the Financial Services Industry led the activity chart with 1.450 billion shares valued at N15.070 billion traded in 14,236 deals, therefore, contributing 75.11 percent and 72.96 percent to the total equity turnover volume and value, respectively.

This was followed by the Conglomerates Industry with 154.906 million shares worth N179.673 million and in 798 transactions.

In the third place was Consumer Goods Industry, with a turnover of 111.782 million shares worth N2.270 billion in 3,865 deals.

During the week, the three most traded equities were the Wema Bank Plc, Zenith Bank Plc and First Bank Holding Plc, the three accounted for a combined 782.167 million shares valued at N8.914 billion and exchanged in 4,624 deals.

The three most traded equities contributed 40.52 percent and 43.15 percent to the total equity turnover volume and value, respectively.

The NSE All-Share Index depreciated by 0.96 percent or 386.81 index points from 40,186.70 index points recorded in the previous week to close at 39,799.89 index points last week.

While market valued of listed equities also dipped by 0.96 percent or N203 billion from N21.026 trillion in the previous week to N20.823 trillion last week.

All indices closed lower with the exception of NSE Banking, NSE AFR Bank Value, NSE MERI Growth and NSE Oil/Gas Indices which rose by 0.69 percent, 1.34 percent, 0.66 percent and 0.97 percent while the NSE ASeM and NSE Growth Indices closed flat.

On a monthly basis, the bourse declined by 6.16 percent and 1.17 percent year-to-date. See top gainers and losers below.

 

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Nigerian Stock Exchange

Dangote Sugar Board of Directors Approves 2020 Audited Financial Statement

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Dangote Sugar Refinery Plc

Board of Directors Has Approved 2020 Audited Financial Statement for Dangote Sugar

The board of directors, Dangote Sugar Refinery Plc, has approved the Financial Statement for the period ended December 31, 2020.

The company disclosed in a statement filed with the Nigerian Stock Exchange on Thursday.

According to the statement signed by Mrs. Temitope Hassan FCIS, Company Secretary/Legal Adviser, Dangote Sugar, the board also recommended the declaration of dividends subject to the approval of shareholders at the Company’s Annual General Meeting to be held in due course.

It stated that “the Closed Period remains in force until 24 hours after the filing of the Financial Statements.

“No insider of the Company, including its Directors, Employees, Advisers and Consultants and their connected persons may deal directly or indirectly in the Shares of the Company during the Closed Period.

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